Welcome to Extreme Investor Network! Today, we are diving into the exciting world of business news with a focus on the unexpected rise of pickleball in the fitness industry.
Life Time Fitness is making headlines by wholeheartedly embracing pickleball as America’s fastest-growing sport. This dedication was on full display in New York City, where top-ranked male pickleball player Ben Johns and tennis legend Andre Agassi were spotted honing their skills at Life Time’s state-of-the-art pickleball courts next to Madison Square Garden.
But Life Time’s commitment to pickleball doesn’t stop there. The upscale fitness company recently announced a strategic partnership with Lululemon, naming the popular athletic apparel brand as the official apparel partner for Life Time pickleball and tennis. This collaboration includes selling Lululemon apparel online at Life Time clubs and working together on key pickleball events.
As the fitness landscape continues to evolve post-Covid, Life Time CEO and founder Bahram Akradi is confident that pickleball will be a game-changer in getting America moving again. In fact, the company has invested between $50 million and $100 million into pickleball, with 6% to 7% of Life Time’s membership dues coming from this booming sport.
With the opening of Manhattan’s largest indoor pickleball destination and over 700 pickleball courts nationwide, Life Time has solidified its position as the largest provider of permanent pickleball courts in the country. The company has even partnered with professional pickleball to host tournaments and elevate the sport’s profile across the nation.
In a surprising twist, Andre Agassi, known for his legendary tennis career, has also jumped on the pickleball bandwagon. After years of wear and tear on his body, Agassi sees pickleball as a low-impact sport that promotes healthy habits and builds community. He has been appointed as the inaugural chairman of Life Time’s pickleball and tennis board, signaling his dedication to growing the sport.
To further enhance the pickleball experience, Life Time is now offering instructional videos from top player Ben Johns to help members improve their skills. Johns himself has witnessed the exponential growth of the sport, with his salary increasing tenfold since 2021 thanks to sponsorships and media rights.
While Life Time’s stock may have seen a slight dip, the company’s first-quarter earnings report tells a different story. Total revenue grew by $85 million, adjusted EBITDA was up over 20%, and net memberships increased by 38,000. Analysts are optimistic about Life Time’s future, with one Guggenheim analyst describing it as “the most underappreciated story in our coverage and perhaps in the broader consumer space.”
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